Spotlight

Indian equities are likely to remain under pressure as elevated crude oil prices, escalating geopolitical tensions and uncertainty over the US Federal Reserve’s policy outlook weigh on investor sentiment. The continuing stand-off in the Middle East, with the risk of further escalation, remains a key concern for domestic markets. WTI crude is trading around $101–$102 a barrel, while Brent remains above $115, as persistent supply concerns continue to underpin prices and cloud the outlook for energy-importing economies.

The Federal Reserve’s October 27–28 policy meeting will be a key event for global markets this week. Although the central bank is widely expected to leave interest rates unchanged, investors will look for signals on the future policy path. Any hawkish shift in tone could keep US Treasury yields elevated, strengthen the dollar and constrain foreign portfolio flows into emerging markets. Conversely, a more measured outlook could offer some relief to risk assets.

Meanwhile, the September-quarter earnings season will continue to drive stock-specific moves, with investors scrutinising results, margins and management guidance for signs of resilience in corporate earnings. Performance across key sectors will be important in determining whether selective buying can offset the broader macroeconomic headwinds.

Asian markets opened lower, with Japan’s Nikkei 225 declining more than 0.20% and South Korea’s KOSPI falling over 0.50%, reflecting a cautious regional mood. The near-term outlook for Indian equities remains cautious, with crude oil prices and developments in the Middle East likely to shape risk appetite alongside signals from the Fed. Earnings announcements may provide opportunities in individual stocks, but a sustained recovery in the broader market could prove difficult unless external pressures begin to ease. 

Technical View

Nifty 50

Nifty 50 continues to remain under selling pressure, with the 22,750–22,800 zone acting as an immediate resistance band and attracting persistent selling interest. A sustained breakout above this range could help stabilise the index, ease near-term selling pressure and pave the way for a recovery towards the psychological 23,000 mark.
 
On the downside, immediate support is placed at 22,400–22,300. A decisive breakdown below this zone could intensify selling pressure and expose the index to further downside towards 22,200–22,000. The index maintains a cautious-to-bearish outlook, with a sustained move above 22,800 required to improve recovery prospects, while a breakdown below the immediate support zone could accelerate the decline.

Bank Nifty

Bank Nifty continues to remain under pressure following its recent correction, with weakness in heavyweight banking stocks weighing on the overall technical structure. On the upside, the 54,800–55,000 range represents the immediate resistance zone, followed by 55,400–55,500. A sustained breakout above the immediate resistance band could improve recovery prospects and strengthen short-term momentum.
 
On the downside, immediate support is placed at 54,000–53,800. A decisive breakdown below this zone could intensify selling pressure and extend the decline towards 53,500. Bank Nifty maintains a cautious-to-bearish outlook, with its ability to hold the immediate support zone and reclaim key resistance levels likely to determine the next directional move.